In a recent report, Frost & Sullivan, a globally recognized consulting firm, predicted that the global healthcare industry would experience steady growth in 2018. The report estimated that the annual revenue from medical products would surpass $1.85 trillion. This projection highlights the increasing importance of healthcare as a key economic sector.
In 2017, investments in digital healthcare exceeded $6.5 billion, marking a year-on-year increase of 109%. According to the report, this trend is expected to continue in 2018 as innovative technologies and platform solutions emerge. These advancements are anticipated to enhance the quality of care, improve treatment outcomes, and support better management of chronic diseases. Additionally, rapid growth in emerging markets is set to reshape the landscape of medical product development and distribution.
The report outlines ten major innovation trends shaping the global healthcare industry in 2018:
**Trend 1: Service as a Product**
The "Service as a Product" model is becoming a critical tool for gaining a competitive edge in the medical field. This model, often referred to as "Service +", is expected to become a significant source of income for sustainable growth in the healthcare industry. Within the next two to three years, 2% to 3% of the total revenue of major pharmaceutical companies and healthcare providers will come from this model.
As the business model shifts toward "platform as a service" and "data as a service," companies will leverage information technology to meet their business goals. This shift is expected to transform capital expenditure into operating costs. The phrase "Let the data speak" is likely to become a new source of innovation.
For medical insurance models that focus on treatment outcomes, smart solutions and services enable more personalized care. In the future, this service-based revenue model will help end users better understand the value of medical care.
**Trend 2: Cloud as the Core Platform for Collaboration**
The cloud is becoming the central platform for cross-industry collaboration, helping stakeholders reduce costs and increase efficiency. As medical data becomes more complex, the cloud provides a flexible environment where all parties can access and share information.
The global medical cloud computing market is expected to exceed $5 billion in 2018, with a projected growth rate of approximately 24% between 2017 and 2022. With the rise of value-based care and precision medicine, deploying scalable cloud platforms is essential. These platforms allow healthcare organizations to integrate various data sets and develop new care models such as telemedicine and home care.
**Trend 3: Tech Giants See High Returns**
Large technology companies are set to see significant returns in the healthcare sector. The FDA’s program for tracking digital therapeutics and health apps is accelerating the entry of non-traditional players like Apple, Verily (Google's life sciences division), Samsung, and Fitbit into the medical market.
To truly implement a "patient-first" approach and drive innovation, the medical industry must align with the IT and retail sectors. Technology and effective business models will be key to winning in this evolving landscape.
**Trend 4: Mobile Healthcare Drives Efficiency**
Virtual testing and remote clinical trials are gaining momentum, with mobile healthcare playing a central role in improving efficiency and putting patients first. Wearable devices and smartphone apps have shown great potential in reducing test costs and streamlining procedures.
Approximately 20% of clinical trials worldwide are expected to be conducted virtually in the coming years. As the "Bring Your Own Device" model becomes more common, mobile and wearable technologies will gain widespread adoption and become industry standards.
**Trend 5: Robotic Surgery and Care Gain Popularity**
Robotic surgery and care are becoming increasingly popular, especially as the demand for elderly care rises due to nursing staff shortages. The medical robotics market is expected to exceed $1.6 billion by 2018. As competition intensifies, the right robotic technology and strategic partnerships will be crucial for success.
It is estimated that by 2025, 80% of surgeries will be performed by robots, signaling a major shift in surgical practices.
**Trend 6: Asia-Pacific Leads Smart Hospital Development**
Asia-Pacific countries are leading the way in implementing smart hospital projects. Digital advances and concepts like smart cities are driving hospitals to adopt more intelligent systems. South Korea, Australia, Singapore, and Malaysia are expected to have around 3,200 smart beds in 2018.
However, challenges such as interoperability and cybersecurity remain significant obstacles to the full implementation of smart hospital solutions.
**Trend 7: Cybersecurity Threats Rise**
Despite increased investment, the number of cyberattacks in the healthcare industry is expected to double in 2018. As medical data becomes more digitized, the sector is increasingly targeted by cybercriminals.
A cybersecurity breach could result in millions of dollars in losses for medical technology companies or device manufacturers. Governments, health departments, and medical device manufacturers must collaborate to establish long-term strategies for risk prevention and information transparency.
**Trend 8: Incentive-Based Health Insurance Gains Momentum**
Incentive-based health insurance plans are becoming more popular. With over half of the global workforce overweight and many suffering from health issues, only a small percentage participate in employer-provided health programs.
The "see data, pay insurance" model is expected to become a standard in 2018, encouraging healthier lifestyles and better cooperation between policyholders and insurers.
Companies like Vitality, Discovery, UnitedHealth Group, and Oscar are at the forefront of this movement, promoting global health initiatives through innovative insurance models.
**Trend 9: AI Becomes Mainstream in Imaging Diagnosis**
Artificial intelligence is set to revolutionize medical imaging. AI can automate processes, improve efficiency, and enhance diagnostic accuracy. These capabilities are expected to significantly benefit radiologists, increasing productivity by 10% to 15%.
With continued development, AI is also expected to improve the accuracy of diagnostic screening in the coming years.
**Trend 10: Blockchain Moves from Concept to Practice**
Although still in its early stages, blockchain technology is beginning to show promise in the healthcare sector. Early implementations of B2B networks demonstrate the potential of blockchain to streamline processes such as insurance claims management and revenue cycle operations.
In 2018, the medical industry may witness breakthroughs in blockchain applications, including token trading and initial coin offerings (ICOs), empowering consumers and transforming traditional healthcare practices.
Cixi Xinke Electronic Technology Co., Ltd. , https://www.cxxinke.com